CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 11 Section Name: {{section.name}} Account Number: File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: November 18, 2024
SUBJECT:
Permanent Local Housing Allocation (PLHA) Grant Program — Budget Allocation RECOMMENDATION:
Adopt a Resolution to appropriate $293,103 of Permanent Local Housing Allocation (PLHA) grant program funds into the fiscal year 2024-2025 operating budget.
BACKGROUND:
Permanent Local Housing Allocation Grant Program
The Permanent Local Housing Allocation (PLHA) grant program provides a permanent source of funding to all local governments in California to help cities and counties implement plans to increase housing affordability. PLHA is a flexible funding source administered by the California Department of Housing and Community Development (HCD) that can be used for a wide range of activities, from increasing the housing supply to providing supportive services.
As PLHA revenue is derived from real estate transactions, the amount of funding fluctuates from year to year, and jurisdictions are required to reapply annually for their allocation. In addition, to receive funds, a jurisdiction must adopt a five-year plan (Five-Year Plan) to allocate its PLHA spending. To date, the City has received three years of PLHA allocations, totaling $1,458,103: $341,894 in the first year (FY 21-22); $531,409 in the second year (FY 22-23); and $584,800 in the third year (FY 23-24).
The City submitted its Five-Year Plan as part of its first application for funds and has subsequently amended it annually to reflect available PLHA funding and City priorities. It was most recently amended in May 2024. This amendment reflected the substantially lower amount of funding in year four compared to previous years.
On May 6, 2024, the City Council adopted Resolution No. 33 (2024), authorizing staff to reapply to the State for the fourth- year allocation and approving an amendment to its Five-Year Plan. The budget for the PLHA fourth-year allocation included in the May 6, 2024, Agenda Report was based on the estimate of $293,103, as follows:
PLHA Year 4 Budget Amount
LifeMoves (Rapid Rehousing) $181,907
BRIDGE Housing (Montara) $61,541
HIP Housing $20,000
Samaritan House (Safe Harbor Emergency Shelter) $15,000 City Administration $14,655
Total $293,103
CITY OF SAN MATEO
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The City received its fourth-year allocation award letter from HCD on October 8, 2024 in the amount of $293,103. The Standard Agreement with HCD will be subsequently amended to reflect the additional funds. To receive the funds from HCD, the final step staff must take is to submit the Request for Funds (RFF), which includes a detailed description of the above-mentioned organizations and activities with their respective funding amounts.
The attached Resolution (Attachment 1) appropriates $293,103 in PLHA funds into the City’s FY 2024-25 operating budget.
BUDGET IMPACT:
The PLHA grant funding is allocated to Fund 280 in the City’s Operating Budget. Since the exact dollar amount varies annually, based upon the collection of the real estate recording fees, the final allocation amount each year can also vary.
For the five-year planning period, the total estimated dollar amount the City will receive is approximately $2,051,364. The attached Resolution appropriating the funds for the fourth-year allocation in the amount of $293,103 adds this amount to the FY 2024-25 operating budget.
ENVIRONMENTAL DETERMINATION:
This action is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Appropriation Resolution
STAFF CONTACT
Rachel Horst, Housing and Neighborhood Services Manager [email protected]
(650) 522-7223